1999 (2) TMI 201 - AT - Customs

Tribunal reclassifies imported medical system under Customs Tariff Heading, overturning initial classification.

X-RAY DIAGNOSTIC CENTRE Versus COMMISSIONER OF CUSTOMS, BANGALORE

X-RAY DIAGNOSTIC CENTRE Versus COMMISSIONER OF CUSTOMS, BANGALORE - 1999 (111) E.L.T. 128 (Tribunal) Issues:Classification of goods under Customs and Central Excise Tariff Heading 90.22 vs. 85.21.Analysis:The appeal addressed the classification issue of a system comprising an Image Intensifier System, Ceiling Suspension, and Adapter Plate under Customs and Central Excise Tariff Heading 90.22 versus 85.21. The Collector of Customs (Appeals) had initially classified the goods under 85.21, leading to a demand notice proposing a differential duty. The Order-in-Original upheld this classification, considering the goods akin to a TV Recorder or Reproducer. The appellants argued for classification under 90.22, supported by technical literature indicating the system's medical purpose in conjunction with X-Ray units. Affidavits from Doctors and Radiologists emphasized the necessity of the Image Intensification for medical imaging, as seen in the Tribunal's precedent case of CC v. Ramakrishna X-ray Institute.The Respondent contended that the classification is based on the scheme of the Customs Tariff Act, where close circuit TV systems are generally classified under Chapter 85 unless imported as non-optional accessories of parent equipment under Chapter 90. As no X-Ray machine was imported with the system in question, the Respondent supported the classification under Chapter 85. The monitor's capabilities to record and play back results were highlighted to support the Order-in-Appeal's decision.Upon reviewing the submissions and technical literature, the Tribunal found the system to consist of specialized assemblies - Image Intensifier Module, Specially designed Video Camera, and Monitor - designed for medical imaging in conjunction with X-Ray machines. The unique functionality of capturing X-Ray images, intensifying them, and displaying real-time results for medical procedures differentiated the system from a standard closed circuit TV setup. The Tribunal emphasized the dedicated medical use of the system, similar to previous cases like Ramakrishna X-ray Institute and Medical College, where similar equipment was classified under 90.22.Considering the specialized nature and medical application of the imported system, the Tribunal applied the precedent decisions and classified the goods rightly under 90.22 for both Customs and Central Excise Tariff Acts. The appeal succeeded, overturning the Order-in-Appeal and granting consequential relief in accordance with the law.